It is forecast wood and timber products will benefit much from the CPTPP. (Photo: VNA) Hanoi (VNA) – The Comprehensive and Progressive Agreement forTrans-Pacific Partnership (CPTPP) is expected to create opportunities forVietnam to expand markets for major exports like wood and timber products, andseafood.
Itis forecast wood and timber products will benefit much from the deal as most CPTPPmember countries have committed to removing tariffs on Vietnamese wood andtimber products immediately after the agreement takes effect.
NguyenTon Quyen, Vice President of the Vietnam Timber and Forest Product Association(VIFORES), said the CPTPP will generate more opportunities than challenges forthe industry.
Apartfrom big traditional markets like Japan,New Zealand, Australia and Singapore,Vietnam’s wood sector haswidened its reach to new markets such as Canada,Peru and Chile.
Underthe CPTPP, many export and import tariff lines on timber products will drop tozero, helping reduce product prices and improve the competitiveness ofVietnamese timber products, he explained.
Moreimportantly, Quyen said, wood processing firms have pinned high hopes on thepact as wood processing equipment will also enjoy zero percent tariffs.
Besides,the CPTPP will help lure more foreign direct investment (FDI) to the domesticwood industry, which traditionally flowed from China, he said, adding thatJapanese enterprises have begun to seek opportunities in the country.
Oncethe deal becomes effective, Vietnamese seafood enterprises will also find iteasier to expand export, especially to new markets like Canada, Peruand Mexico.
Intuna exports, for example, Vietnamcurrently competes with major producers Thailand and China. However, neither of them areCPTPP members, enabling Vietnamese tuna to enjoy more tax incentives in marketswithin the pact.
Thecountry’s shrimp exports are also expected to benefit from the fact that India,a leading shrimp exporter, is not a CPTPP member.
However,some sectors such as husbandry are forecast to face fierce competition in thedomestic market since breeding products from big markets like Canada and Australiawill flood Vietnamafter the deal comes into force.
Giventhis, Hoang Thanh Van, head of the Department of Animal Husbandry under theMinistry of Agriculture and Rural Development, suggested the sector innovateand focus on advantageous products.
Localfirms should change their management methods and use the reduction of tariffson husbandry equipment to cut production costs, he said.
Accordingto Nguyen Do Anh Tuan, Director of the Instituteof Policy and Strategy for Agricultureand Rural Development, participating countries will cut tariffs but will also raisenon-tariff barriers and tighten controls, the largest challenge for Vietnam’sagricultural exports.
Toaccess and dominate big markets like Japanand Australia,Vietnamese major exports such as rice, coffee, pepper, cashew nuts and seafoodneed to surpass technical barriers and satisfy food safety and hygiene requirements,he said.
Expertsalso stressed the need for Vietnamto step up trade and investment promotion with partners from the CPTPP members toform global value chains.
Agenciesshould review vulnerable sectors like husbandry and sugarcane cultivation toset forth supportive policies, helping farmers cut production cost and improveproduct quality and competitiveness, while minimising losses from competition.
Tuansaid standards regarding technique quality and product origins must be the toppriorities of the Vietnamese agricultural sector.
Itis necessary for businesses to improve their protection capacity in the contextof competition with imported products, by intensifying production connectivity,building domestic distribution networks and using the State’s incentivepolicies.
The 14th National Assembly passed a resolutionapproving the CPTPP and related documents on November 12 as part of thelegislature’s sixth session.
The CPTPP was signed by 11 member states, namely Australia, Brunei,Canada, Chile, Japan,Malaysia, Mexico, NewZealand, Peru,Singapore, and Vietnam inMarch 2018.
It is one of the most comprehensive trade deals ever concluded andstrips 98 percent of tariffs for the 11 countries with a combined GDP of morethan 13.8 trillion USD and close to 500 million consumers.
The pact will be provisionally enacted 60 days after it is ratified by sixcountries.
As such, the CPTPP is hoped to take effect in December 2018, as so far Mexico, Japan,Singapore, New Zealand, Australiaand Canadahave ratified the deal.-VNA
VNA
